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Exam 2: Strategic Leadership: Managing the Strategy Process

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Question 1

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Which of the following statements is true of corporate strategy?

A) The objective of corporate-level strategy is to ensure that the sum of the values of individual business units is greater than the overall corporate value.
B) A corporate strategy must be able to create synergies across business units that are quite different.
C) Formulating a corporate strategy involves general managers answering questions relating to how to compete in order to achieve superior performance.
D) Deciding whether to adopt a differentiation or a cost-leadership strategy is part of formulating the corporate strategy.

E) A) and B)
F) None of the above

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Question 2

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What are the arguments against top-down strategic planning and scenario planning?

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Critics of top-down and scenario planning argue that strategic planning is not the same as strategic thinking. In fact, they argue the strategic planning processes are often too regimented and confining. As such, they do not allow for the necessary strategic thinking. Managers doing strategic planning may also fall prey to an illusion of control-that is, the hard numbers in a strategic plan can convey a false sense of security. According to critics of strategic planning, in order to be successful, a strategy should be based on an inspiring vision and not on hard data alone. They advise that managers should focus on all types of information sources, including soft sources that can generate new insights, such as personal experience or the experience of front-line employees.

Question 3

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Executives whose visions and decisions help their companies achieve competitive advantage can be considered strategic leaders.

Blue Billion Inc. is a large company that sells a variety of products such as cosmetics, jewelry, frozen foods, navigation electronics, and airplanes. Apart from this, the company also has a strong presence in the service industry through its chain of dance studios, casinos, and nightclubs. Each of its product divisions operates as an individual business and is responsible for its own profits and losses. Thus, these product divisions under Blue Billion can be referred to as

Which of the following functions do the general managers in strategic business units primarily perform?

Organic Food Inc., a multinational company, relies on its media partner Radio Plus to regularly advertise its offers, sales, and new products. Radio Plus is invested in this relationship because it generates most of its revenue from advertising Organic Food's products. In this scenario, Radio Plus is Organic Food Inc.'s

Burke Furnishings is a company that manufactures and sells home furniture. It sources its materials from another country to keep costs low. An assembly line worker in one of its manufacturing centers noticed that there was increasing concern regarding the potential toxicity of the flame-resistant materials used in the furniture. In response, she compiled a list of nontoxic flame-resistant materials that the company could use. When her manager learned about this, he presented the prospect and got it approved from the top management team. This is an example of the

A ________ is best described as any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures.

As the legal owners, ________ have the most legitimate claim on a company's profits.

The founder of T-Square Construction strongly believes in the notion of corporate social responsibility, so he has proposed a number of philanthropic activities that he expects the company to pursue. In order to accomplish this vision, the managers should first

Who formulates a company's corporate strategy? What is the objective of this strategy?

Under the strategy as a planned emergence model, even entry-level employees can help generate strategic initiatives.

What is meant by corporate social responsibility (CSR)?

When the strong dictatorial rule in Backenstein unexpectedly collapsed due to the shocking death of the royal family in an explosion, the nation's economy experienced drastic changes. The laws became more restrictive, the country lost many locally produced resources and products, and the distribution of wealth became inequitable. The unexpected event that led to these changes can best be described as a(n) ________ event.

Define strategic leadership.

Which of the following best describes a Level 5 manager in the Level-5 leadership pyramid?

The CEO of Chyron Media has decided to enter the markets of emerging nations like China and Brazil. This means that the books, magazines, and websites published under the Chyron Media banner would be made available in these nations. Which of the following strategies does this scenario best illustrate?

Describe the traditional top-down strategic planning process.

Strategic leaders spend the majority of their time working alone to devise new strategies.

An employee lacking some of the innate abilities to be a top-level manager can still become an effective strategic leader through hard work and experience.